Senate repeals CFPB’s indirect auto lending bulletin; NAFCU looks to CU relief

The Senate, by a 51-47 vote Wednesday, repealed the CFPB’s 2013 bulletin regarding indirect auto lending using the Congressional Review Act (CRA). The resolution is expected to pass the House, and President Donald Trump is likely to sign the measure.

This is the first use of the CRA on regulatory guidance that was never submitted to Congress as a rule. Senate Republicans invoked the CRA on this regulatory action based on a Government Accountability Office (GAO) finding that the CFPB’s bulletin was generally enforced by the bureau the same way as a rule, yet was never submitted to Congress for review as is protocol for all rules created by regulators. Because Congress never reviewed the bulletin, the CRA’s 60-legislative-day clock never started, thus never expired.

While NAFCU and credit unions strongly support fair lending, the association worried that the bulletin could potentially set the stage for making indirect lenders, including credit unions, liable for fair lending violations by auto dealers.


continue reading »